Pizza Express could be forced to permanently close a number of UK restaurants as debts continue to pile up amid the coronavirus lockdown.
The struggling chain is reportedly considering a restructuring process known as a CVA, which would allow it to exit some or all of its loss-making sites and reach an agreement with creditors.
Before the coronavirus pandemic hit in March, forcing restaurants to close, fewer than 10 of the chain's venues were loss-making, a spokesman told Mirror Money.
But it is understood the crisis has forced the firm to evaluate options for ensuring its future viability and a CVA is one of several possibilities.
"Our priorities during the COVID-19 pandemic remain clear - to look after our teams, to protect the business for the long term and to re-open successfully when the time is right," a statement said.
"While planning for the future, we will undertake a comprehensive review of our business encompassing our restaurants, including the roll-out of Future Express, and planned digital innovations.
"When complete, and hopefully with greater clarity around how our restaurants can re-open safely, we will take the right steps to ensure PizzaExpress’ next 55 years are as successful as the last 55 years."
Pizza Express - owned by Chinese private equity firm Hony Capital - is grappling with a £1.1billion debt pile, of which £665million is owed to bondholders.
The group has to pay the first instalment of its debt repayments, worth £465million in secured bonds, by August 2021.
Pizza Express reportedly called in auditors in October, after its most recent accounts showed the chain's total debt was £1.1billion - working out at £1.79million a restaurant.
Earlier this month credit ratings agency S&P said a debt restructuring was 'highly likely'.
In the chain's last fiscal report in October, it said 95% of branches remain "profitable" though admitted sales had taken a hit on the back of Brexit.
"Based on our unaudited preliminary management accounts for the 13-week period between July 1, 2019 and September 29, 2019, Group revenue increased by £1.6million to £138.6million," a statement said.
However, UK growth in the same period was down 1.1%, taking earnings before tax to £19.9million.
Speaking of future plans, it said its "FutureExpress" model continues, which includes the refurbishment of five existing sites in the UK and Ireland.
However, the firm added that it continues to assess its "future funding options", in terms of investment and working capital.
Since the outbreak of the pandemic, Prezzo, Carluccio's, Wahaca and more have drafted in professional advisers to explore their financing options, amid warnings many high street businesses will never recover from lockdown.
Others, including the burger chain Byron, have decided to kick off formal sale processes.
Giraffe last week confirmed it had saved 30 Carluccio's outlets, protecting 900 of the company's 2,000 jobs.
Mirror Money has contacted Pizza Express for a statement.
